A Practical Guide for Subscription Brands to Lower Disputes and Protect Revenue
By Solvpath
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If you run an eCommerce business, you know the grind – billing disputes, refund requests, fulfillment hiccups, and the nonstop battle to keep your chargeback ratios under control.
At Solvpath, we spend every day helping merchants clean up post-purchase chaos – automating support, returns, and retention. Along the way, we’ve seen firsthand what actually drives chargebacks… and it’s not always fraud.
More often, it’s friction — small, fixable issues that add up to big problems. Things like hard-to-find cancellation links, confusing billing descriptors, slow refunds, or missing tracking updates.
The goal here isn’t to point out the obvious, but to highlight the not-so-obvious things that can make a real difference. Small changes that reduce chargebacks, lower support volume, and quietly improve profit margins.
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1. Offer Self-Service: The #1 Way to Reach Customers Faster
Self-service isn’t a trend—it’s the new standard. Over 80% of customers now prefer or expect to solve issues on their own before reaching out to support.
If you’re not offering it yet, start today. Self-service doesn’t replace phone or email support—it empowers customers with a faster, frictionless path to resolution.
When customers can effortlessly manage subscriptions, track orders, or process returns, frustration plummets and disputes vanish.
Why it matters:
• Instant control + satisfaction for customers
• Cuts friction and slashes inbound support volume
• Unlocks rich analytics and customer insights
• Costs pennies compared to live agents
• Supercharges retention with cancel insights, save offers, and targeted strategies
What if 80% of your support headaches disappeared overnight? Solvpath makes it effortless.
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2. Fix Your Billing Descriptor
Nearly 40 % of chargebacks come from billing confusion.
Step 1: Make It Clear
Your descriptor should immediately remind customers who you are and what they purchased.
Bad descriptor:
BL HOLDINGS LLC
Good descriptor:
GLOWSKIN.COM 877-555-0123
Always test how both your soft (gateway) and hard (settled) descriptors display on mobile banking apps. Make sure your brand name and contact info are visible and not cut off.
Step 2: Understand the Two Types
• Soft Descriptor – Shown during authorization, comes from the gateway
• Hard Descriptor – Appears after settlement, comes from your merchant account
Run both and confirm they match. Inconsistencies cause confusion and disputes.
Step 3: Choose Between URL or Phone Number
• For demographics under 55, use a URL vs Phone number to drive self-service and reduce call volume.
• For demographics over 55, a phone number still works best.
Descriptors are your first line of defense — make sure they build trust, not confusion.
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3. Set Up High-Priority Phone Queues
One of the easiest fixes: Separate your phone numbers.
Use one for general support and another dedicated line for billing or credit-card descriptor calls.
Those billing calls are high-urgency – if they’re not answered quickly, they can often turn into chargebacks. By isolating that number, you know exactly why the customer is calling and can respond faster.
If you see a missed call, call back immediately.
That simple follow-up can save a sale and prevent a dispute.
Recommendation:
• Use two lines — one standard, one high-priority
• Keep descriptor calls under 30 seconds hold time
• Train agents to de-escalate billing concerns fast
Small operational tweaks like this make a measurable difference.
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4. Pre-Billing Notifications
A lot of brands avoid sending pre-billing reminders, worried they’ll cause cancellations. In reality, they do the opposite.
When customers know what’s coming, they’re less likely to dispute. Pre-billing notifications build trust, lower chargebacks, and actually improve save rates.
Why it matters:
• Builds trust and reduces billing confusion
• Keeps you compliant with subscription regulations
• Lowers disputes and support volume
• Increases retention by allowing pause, skip, or discount options
Send reminders 3–7 days before renewal, and if they click through, direct them to your self-service portal to manage or modify their subscription.
Pre-billing notifications don’t cause churn — they create confidence.
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5. The 24-Hour Hold Period
Most chargebacks for subscriptions happen during billing cycles 2 and 3.
Add a small buffer:
• Authorize first, capture later (1–3 days) — authorizations can’t be disputed.
• Apply a 24-hour hold before shipping on rebills — if the customer cancels, you void the transaction and avoid the chargeback.
This one-day delay reduces refunds, shipping costs, and disputes — especially for recurring shipments.
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6. Communicate During Refunds
Refunds often become chargebacks simply because customers don’t know when they’ll see the credit.
Use your email or drip platform (Klaviyo, Maropost, etc.) to automate a simple flow:
• Day 1: Send an email and SMS confirming the refund, with the transaction ID and expected posting time (3–5 days).
• Day 3: Follow up if it hasn’t appeared yet, reminding them banks process at different speeds.
It’s a small, low-cost step that reassures customers their money’s on the way — and stops unnecessary disputes before they start.
EXAMPLE DAY 1:
Hi {{customer.first_name}},
Your $49.99 refund has been PROCESSED!
Transaction ID: #TXN-123456789
Date Processed: Jan 15, 2024
**Please allow 3-5 business days for your credits to reflect in your account. **
Check back soon!
{{shop.name}}
877-555-0123 (High Priority Phone Queue)
EXAMPLE DAY 3
Hi {{customer.first_name}},
**Just following up** on your $49.99 refund (#TXN-123456789)
If you haven’t seen it yet, **give it another 1-3 days** – it’s coming!
Some banks take longer than others. **We DID process it** and it’s on its way.
{{shop.name}} 877-555-0123 (High Priority Phone Queue)
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7. Catch Delivery Issues Early
Did you know?
About 1.7 % of packages go missing, 0.5 % are stolen, and over 30 % of returns are delayed or damaged.
Use a third-party tracking tool that syncs with your carrier logs to flag delayed, returned, or failed shipments.
When something looks off, reach out first:
“We noticed your order may be delayed. We’ve contacted the carrier and will update you once it’s resolved.”
That quick touchpoint shows accountability and prevents a frustrated customer from turning into a chargeback.
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8. Post-Purchase Order Tracking
Something as simple as a “Track My Order” link can significantly reduce both chargebacks and support tickets.
Always include it in your confirmation emails, shipment updates, and on your homepage or self-service portal (Solvpath supports this natively).
On average, 25 % of all customer support tickets are “Where’s my order?” – and during the holidays, that can spike to 40–50 %.
When customers can see their delivery status instantly, they don’t need to email, call, or dispute.
Visibility builds trust, reduces workload, and prevents frustration before it starts.
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9. Turn Support Data Into Chargeback Intelligence
Your support data is gold – use it.
Whether it’s from a self-service portal, chatbot, or ticketing system, every customer interaction points to where friction exists — product issues, billing confusion, delivery delays, or unclear messaging.
What to track:
• Product-specific questions
• Billing inquiries or renewal confusion
• Fulfillment and delivery issues
• Cancellation or refund reasons
Keep your data centralized. If you use a third-party call center, make them work inside your ticketing system so you retain every record.
Now, with AI built into platforms like Solvpath or chatbots you can even monitor sentiment — spotting frustration before it becomes a dispute.
The more you analyze your data, the better you’ll get at fixing small issues early. Data is king – collect it, review it, and let it guide your prevention strategy.
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10. Compelling Evidence
For subscription businesses, Compelling Evidence 3.0 can quietly block friendly-fraud disputes before they happen.
How it works:
When a fraud dispute is filed, Visa and Mastercard can check for prior, undisputed transactions from the same card or device.
If there are two or more successful transactions within 120–365 days, the claim can be automatically rejected.
This feature is especially effective for continuity merchants who already have recurring billing data.
You can access it through Verifi (Visa) and Ethoca (Mastercard).
It’s not a cure-all, but for recurring billing models, it’s one of the simplest ways to protect your ratios and revenue.
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11. Simplify Returns & Refund on Scan
If you’re offering returns, make them easy – and automated.
Many merchants still use outdated RMA processes that delay refunds and frustrate customers. That delay window often leads to disputes.
Use a tool like Solvpath Returns (or another automated system) to generate return labels instantly within your self-service portal.
Why it works:
• Faster refunds: Trigger refunds when the label is scanned, not after it’s delivered.
• Tracking visibility: Customers see progress and stop wondering where their refund is.
• Retention chances: Before the refund, offer swaps, replacements, or discounts to save the sale.
This process reduces refund-related disputes by roughly 22 % (Solvpath data, 2024) and gives customers a smoother, more transparent experience.
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Conclusion
I might’ve missed a few things, but these are the not-so-obvious ways we’ve found to make a real difference.
Hopefully you picked up a few ideas you can apply today to lower disputes and protect your bottom line.
Chargebacks are costly – they lead to refunds, fees, and lost time. By preventing them, you’re not just protecting your ratios – you’re improving your profit margins and customer relationships.
If you walked away with even one or two useful nuggets here, then this article did its job.
And if you want to dig deeper into your post-sale processes or explore automation that can help reduce chargebacks, increase retention, and keep your operation running smoother — let’s chat.
👉 Book a Demo